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Jan 1st 2015 - New EU VAT Laws for Digital Products & Services

Discussion in 'BlackHat Lounge' started by boombap, Sep 18, 2014.

  1. boombap

    boombap Junior Member

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    There is an EU wide VAT change that is coming into effect from 1st January 2015.

    From that date ALL businesses who supply digital services to consumers from another member state MUST charge VAT at the VAT rate effective in the consumers member state.

    The current UK VAT threshold of £81K is irrelevant; if you supply digital services to other EU consumers then you will need to register for VAT.

    To save registering in all the different EU countries there is a mechanism for completing one return for HMRC, who will distribute the VAT to the various different countries. Records need to be suitably detailed to split income be country, and evidence to support the location of customers has to be kept.


    • Penalties may be issued from other EU tax authorities.
     
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  2. SharkServers

    SharkServers Regular Member

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    Business to business (B2B) is unaffected, so if you only provide services to companies and not individuals, you do not need to worry about this

    From HMRC: "If you supply digital services to businesses only (including those who are self employed) then these changes do not affect you."

    Full info here: http://www.hmrc.gov.uk/posmoss/

    P.S. I hate this sh*t!
     
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  3. junglist08

    junglist08 Junior Member

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    For every type of business out there, there is a scumbag organization "watching over" to vacuum money out of the entrepreneurs.
     
  4. LostConnection

    LostConnection Senior Member

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    Oh bloody hell...
     
  5. sergejivanov

    sergejivanov Newbie

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    Sounds awful...they are opening their hands for our money everywhere :(